ERP vs. CRM Software: How Are They Different?

If your business is considering business management software and you’re debating whether you need an ERP solution or a CRM solution, here’s what you need to know about the differences between ERP vs CRM software and the business benefits each brings.  

What is the Role of CRM Software in a Company?

CRM (Customer Relationship Management) software helps you manage and track all your customer information and interactions with your business. CRM is typically used primarily by sales, marketing, and customer service teams, as it helps your business acquire new customers, improve customer satisfaction, increase customer retention, and streamline the sales and marketing process.  

CRM Software Functionality

With a CRM solution, you’ll typically see functionality that includes: 

• Contact and lead management 
• Sales forecasting and sales analytics  
• Opportunity management  
• Reports and dashboards 
• Marketing automation 
• Campaign management  
• Sales tasks/activity automation  
• Call center automation and integration 
• Chat integration  
• Support automation  

Benefits of CRM Software

The benefits of having a well-implemented CRM solution in your organization often include the following: 

• Centralized database for customer data and interactions 
• Improve customer service and boost retention  
• Easily manage all communications with prospects 
• Simplify and automate processes and routine tasks like data entry, etc.  
• Improve visibility into leads, prospects, and the sales cycle  
• Increase sales and maximize customer lifetime value  
• Streamline marketing efforts and automate campaigns 
• Improve analytics and reporting  

 In short, a CRM solution can help you meet the needs of your customers and create better relationships that often translates into long-term profitability. 

What is the Role of ERP Software in a Company?

ERP (Enterprise Resource Planning) software helps you integrate and manage all your core businesses processes in a single system so you can manage your daily activities more efficiently. Your ERP system can be used by virtually every department – from finance, HR, sales, operations, even your warehouse and factories if you’re in the manufacturing industry. It helps your company consolidate its data, increase visibility and collaboration, along with a host of other benefits. You can either opt for a cloud ERP or on-premises ERP solution.

ERP Software Functionality

With an ERP solution, you’ll typically see functionality that helps with: 

• Financial management and accounting 
• Reporting and data analysis  
• Sales 
• Service management 
• Project management  
• Supply chain management 
• Warehouse and inventory management 
• Manufacturing management 
• Human resource management 
• Customer relationship management  

Benefits of ERP Software

The business benefits of a modern ERP solution in your organization often include the following: 

• Streamlining and automation of core business processes  
• Improved financial consolidation and visibility 
• Lower operating costs and increased efficiency  
• Improved reporting and ability to make better business decisions 
• Easier to scale and grow a business  
• Shortened lead times, improved delivery times, and optimized inventories  
• Ability to create resilient and agile supply chains  
• And many more! 

To sum it up, an ERP solution impacts almost every aspect of your organization when implemented correctly, and this helps streamline your entire operations and processes. 

ERP vs. CRM Software: Which Solution Do Small and Mid-Sized Businesses Need?

An ERP solution is oriented towards the entire organization and focuses on back-office activities, while a CRM is mostly used for customer relationships, sales, and marketing. Both are beneficial for a business, and it really depends on your company’s goals and business needs.  

Most organizations – especially small and mid-sized companies who are gearing for growth – prefer to use both systems together. In fact, most modern ERP cloud solutions today (Dynamics 365 Business Central, for example) already have CRM capabilities in-built in their solution. They also have a range of integrations available, so you can connect your third-party CRM software with your ERP system.  

To learn more about how you should integrate your ERP and CRM solution, or if you need help deciding which software is best suited to your current business needs, book a free consultation with the Kwixand Solutions team and we’ll be happy to help.  

About Kwixand Solutions

Kwixand Solutions is a Microsoft Dynamics 365 Partner and digital transformation consultancy that guides businesses in Canada and USA through every stage of their ERP, CRM, or cloud transformation. For us, successful digital transformation is much more than just implementing a solution; it's about helping your company optimize its processes and maximize ROI. 

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